Advanced Accounting
Twelfth Edition
by
Hoyle/Schaefer/Doupnik
Key Figures in Selected Problems
(Check figures for multiple choice questions not provided.)
CHAPTER 3
P3-15:(a)Equity method consolidated retained earnings, 12/31/15= $496,000 (same for initial value and partial equity methods)
(b)Equity method investment balance 1/1/15 = $577,000
(c)For the partial equity method, Entry *C includes a credit to the Investment in Rambis account for $12,000
P3-16:(a)Investment in Turner balance 12/31/15 = $277,000
(b)Consolidated net income = $366,000
(c)Consolidated equipment, 12/31/15 = $803,000
(d)For the initial valuemethod, Entry *C includes a debit to the Investment in Turner account for $56,000
P3-17:(a)Acquisition-date Goodwill = $400,000
(b) Goodwill Impairment Loss = $300,000
P3-18(a) Goodwill Impairment Loss = $445
P3-19:(b) Implied value of goodwill-Sand Dollar = $100,000
Implied value of goodwill-Salty Dog = $155,000
P3-20:Entry A at 12/31/14 and 12/31/15 includes a debit to Goodwill for 60,000
Entry I on 12/31/14 includes a debit to Equity in Subsidiary Earnings for $74,000
P3-21:Goodwill = $50,000
Total amortization expense at 12/31/14 = $11,500
Entry A at 12/31/14includes a debit to long-term liabilities for $30,000
Entry A at 12/31/15 includes a debit to long-term liabilities for $22,500
Entry *C at 12/31/15 includes a credit to Chapman’s RE for $58,500
P3-22:Goodwill = $120,000
In Entry A, on 12/31/14, credit Investment in Abernethy for $120,000
In Entry S, on 12/31/15, debit Retained Earnings-Abernethy for $170,000
P3-23:(a)Equity method Investment in Clay, 12/31/15 = $592,000
Initial valuemethod Investment in Clay, 12/31/15 = $510,000
(b)Consolidated expenses = $480,000
(c)Consolidated equipment = $970,000
(d)Adam’s 1/1/15retained earnings (equity method) = $1,030,000
Adam’s 1/1/15retained earnings (initial value method) = $990,000
(g)Consolidated net income = $160,000
P3-24:(a)Consolidated copyrights = $1,400,000
(c)Consolidated retained earnings 12/31/15 = $900,000
P3-25:(a)Buildings = $1,200,000; Goodwill = $40,000;
Equipment = $1,563,000
(e)Foxx’s retained earnings 1/1/15 (equity method) = $1,232,000
P3-26(a)Goodwill = $200,000
(d)Total consolidated assets = $10,825,000
P3-27(a)Goodwill = $137,000
(d)Total consolidated assets = $14,000,000
P3-28:(a)Goodwill = $55,000
(b)Consolidated equipment = $1,170,000
Consolidated net income = $935,000
Total consolidated liabilities & equities = $2,800,000
(c)Consolidated retained earnings 12/31 = $1,493,000
P3-29:(a)Annual excess amortization expenses = $15,000
Consolidated net income = $360,000
Total consolidated assets = $3,700,000
P3-30:(a)Goodwill = $60,000
(b)Consolidated net income = $588,000
(d)Consolidated total assets = $3,143,000
Consolidated retained earnings = $1,695,000
P3-31:(a)*C adjustment = $240,000
Consolidated net income = $1,690,000
Consolidated total assets = $15,000,000
(b)Investment account equity method balance = $3,570,000
P3-32:(a)Total excess fair-value amortization expenses = $14,000
Buildings = $625,000
Customer List = $75,000
P3-33:(a)Patented technology excess fair-value amortization = $34,000
(b)Consolidated net income = $560,000
Consolidated patented technology = $975,000
Consolidated retained earnings 12/31 = $2,295,000
Total of consolidated assets = $3,139,000
P3-34:(a)Investment in Wolfpack = $500,000
(b)2014loss from increase in contingent performance obligation = $5,000
(c)Entry A debit to royalty agreements = $90,000
(d)Entry *C credit to Branson’s retained earnings = $30,000
P3-35:(a)Annual excess amortizations = $2,000
(b)Total consolidated assets = $1,727,500
Consolidated retained earnings = $744,500
P3-36:(a)Goodwill = $21,600, Investment in Jasmine 12/31/15 = $257,100
(b)Equity in subsidiary earnings = $23,700
(c)Consolidated net income = $135,700
(h)Consolidated retained earnings = $410,000
P3-37:(b)Consolidated net income = $1,563,000
Consolidated retained earnings = $4,363,000
Consolidated total assets = $14,000,000
P3-38:(b)Implied fair value of Goodwill = $16,894,000
(c)Net loss = $25,306,000
(f)Consolidated total assets = $232,049,000
Consolidated retained earnings = $26,394,000